Mumbai
While looking at the research reports of the brokers, we came across a number of interesting sectors. Here I have highlighted the field of ‘small finance companies’ with multiple good valuations. The keynote address was delivered by MK Global Financial Services. The overall improvement that finance companies have made in FY 2022 is discussed here. Here are some very important points.
- Uncertainty over ‘cost of credit’ is decreasing.
- Further improvement will be visible in the remainder of the financial year.
- Collection and disbursement, two small finance companies will be able to increase.
Meanwhile, according to MK Global, Housing Finance and Vehicle Finance, both of which will be able to grow their business in the next few months. New home sales will speed up loan sanction. There will also be improvement in the transport sector, so sales of new trucks will increase. The finance company will be able to increase the net interest margin overall - so the profit margin will be higher in the coming days.
According to the brokerage firm, the companies listed below can do well:
- LIC Housing Finance
- L&T Finance Holdings
- Shriram Transport
- Mahindra Finance
In addition to housing and vehicle finance, small finance companies will want to take SME loan books home. MK Global thinks that a lot will depend on this field in the coming days. The industry will also keep an eye on micro loans. At the same time if non-performing assets
If it can reduce further, then small companies are bound to benefit.
Corporate correspondent
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